Note H – Intangibles

Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Customer relationships, non-compete agreements and intellectual property are being amortized using the straight-line method over a period of 5 years. Trademarks are not amortized as their lives are deemed to be indefinite.

The gross carrying amount and accumulated amortization of amortizable intangible assets:

	Industrial Hardware Segment		Security Products Segment		Metal Products Segment		Total		Weighted-Average Amortization Period (Years)
2015 Gross Amount
Patents and developed technology	$	2,429,839	$	1,042,307	$	--	$	3,472,146		15.6
Customer relationships		--		449,706		--		449,706		5.0
Non-compete agreements		--		407,000		--		407,000		5.0
Intellectual property		--		307,370		--		307,370		5.0
Total Gross Intangibles	$	2,429,839	$	2,206,383	$	--	$	4,636,222		12.6

2015 Accumulated Amortization
Patents and developed technology	$	1,639,193	$	566,382	$	--	$	2,205,575
Customer relationships		--		44,971		--		44,971
Non-compete agreements		--		40,700		--		40,700
Intellectual property		--		30,737		--		30,737
Accumulated Amortization	$	1,639,193	$	682,790	$	--	$	2,321,983

Net July 4, 2015 per Balance Sheet	$	790,646	$	1,523,593	$	--	$	2,314,239

2014 Gross Amount
Patents and developed technology	$	2,494,261	$	1,025,303	$	--	$	3,519,564	15.7
Customer relationships		--		449,706		--		449,706	5.0
Non-compete agreements		--		407,000		--		407,000	5.0
Intellectual property		--		307,370		--		307,370	5.0
Total Gross Intangibles	$	2,494,261	$	2,189,379	$	--	$	4,683,640	12.7

2014 Accumulated Amortization
Patents and developed technology	$	1,649,655	$	535,415	$	--	$	2,185,070
Customer relationships		--		--		--		--
Non-compete agreements		--		--		--		--
Intellectual property		--		--		--		--
Accumulated Amortization	$	1,649,655	$	535,415	$	--	$	2,185,070

Net January 3, 2015 per Balance Sheet	$	844,606	$	1,653,964	$	--	$	2,498,570